Problem
Consider a perfectly competitive market where each firm has the short-run cost function C(q) = a + bq + cq^2 for some positive constants a, b, and c. (1) Show that firms shut down in the short-run if p < b. (2) Show that when p > b + 2 squareroot ac, more firms will enter in the long-run.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.